Novel Business Models Built Upon an All-Internet Philosophy Threaten to Disrupt Traditional Telecom

Joel Stradling

Summary Bullets:

  • Aryaka launched Network-as-a-Service (NaaS) for IPSec-secured access over existing Internet links onto Aryaka’s POPs to create global data WANs.
  • Kunnect provides an early-mover cloud-based hosted call center solution with a free-of-charge version.

The rapid expansion of companies that have based their products and strategies entirely in the cloud from the outset is disrupting traditional market models. This is hardly new: After VoIP providers first disrupted traditional telephone calling rates, Skype pioneered P2P technology that largely abolished per-minute billing for voice. However the change is ongoing. Two companies are recent examples that break traditions with aggressive sales for all-cloud products and services targeting the enterprise: Aryaka and Kunnect. Usually free trials are a consumer play, and that’s because they are low-cost, best effort, over the unsecure public Internet, and shared infrastructure are not really the routes that the cautious business IT buyer would choose to go down. On the other hand, the cost to deploy a fully managed and dedicated circuit with security appliances and the backing of professional service teams is very high.

This is where companies like Aryaka and Kunnect are making their moves, leveraging strong IP skills and a different perspective on doing business to force change. Aryaka is offering a brief (two-day) free trial for global data WAN implementers to try before they buy. Of course there is a caveat that the end points need to already have some form of Internet access in place to point IPsec VPN tunnels from their CPE routers to Aryaka’s WAN PoPs. Meanwhile, Kunnect is the first cloud-based hosted contact center to offer a ‘freemium’ option, giving its users automated outbound right-party services for effective customer contact. The messaging of these companies is built around low entry cost, flexibility, rapid to deploy, and with little or no new premises-based equipment or high startup fees. These services are also branded as cloud-ready, which means they are optimized for running SaaS tools and other cloud applications.

Kunnect’s tool uses business information to provide personalized call treatment and make sensible routing decisions. Similarly, Aryaka has positioned itself as the world’s first cloud-based WAN optimization specialist. Aryaka’s latest product launch, Network-as-a-Service, goes a step further to avoid expensive IP/MPLS VPN and Ethernet VPN technologies, and to use its WAN with existing Internet access instead. Aryaka’s WAN product is sold as an optimized public/private resource that, once provisioned by IPSec over the existing link, gives access to SaaS and cloud services. The unique sales point here is that there is no need for weeks of MPLS provisioning. Instead, enterprise locations connect into the Aryaka network with IPSec across an existing Internet link just by reconfiguring their CPE routers. We suggest that staff sourcing enterprise IT take a close look at these new style cloud players, and others like them, especially since the barriers to test these services are so low. Any progress here can also be used at the negotiating table to push and challenge existing vendors with bringing to market more competitive offerings that have the same benefits.

About Joel Stradling
Joel is a Research Director in the Business Network and IT Services team at Current Analysis. Joel and his team cover global and European providers of enterprise voice and data network services, as well as international wholesale carrier-to-carrier services. Additionally, Joel covers managed WAN solutions, including Ethernet and IP VPN, and innovative developments in wholesale carrier services.

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